Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Things will cost more than you expect. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Desperate entrepreneurs lose their leverage and die young. Buffer your projected resource requirements.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

NOVEMBER 28, 2020

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? The cost of social media done well is low. Just make sure you can fill in all the details.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Things will cost more than you expect. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Desperate entrepreneurs lose their leverage and die young. Buffer your projected resource requirements.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

The Startup Magazine

JANUARY 14, 2020

According to the World Green Building Council (WGBC), the following findings support a case for green building: Lower operating cost – the construction of green buildings can help building owners and occupiers save money thanks to efficient energy and water usage. Introduction of smart metering. Upgrading of the HVAC system.

Green 139

Green California Government Valuation 139

Austin Startup

APRIL 25, 2017

I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. In order to achieve 20x growth, Snap needs grow both of those metrics 4–5x. In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap?

Valuation 48

Valuation Technical Review Forecast Social Network 48

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. And if the company does go public, the valuations are at least 10x of the last bubble. Some have labeled this period as irrational exuberance. The result?

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Things will cost more than you expect. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Desperate entrepreneurs lose their leverage and die young. Buffer your projected resource requirements.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Things will cost more than you expect. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Desperate entrepreneurs lose their leverage and die young. Buffer your projected resource requirements.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Startup Professionals Musings

JUNE 22, 2016

That should make you wonder - how do you measure traction in a metric? While thinking about the parameters of traction, and how to measure it, I was impressed with a new book, “ Scaling Lean: Mastering the Key Metrics for Startup Growth ” by Ash Maurya, a serial entrepreneur, and creator of the one-page business modelling tool Lean Canvas.

Metrics 143

Metrics Advisory Board Startup Lean 143

Both Sides of the Table

NOVEMBER 14, 2017

MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. As companies get this initial customer feedback on their product they start to have to ask harder questions about unit economics: How much does it cost us to acquire a new customer? and we were met with weak demand, slow growth and high costs.

Operations 286

Operations New York City Technical Review Startup 286

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. That said, nothing is cost-free.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

MAY 4, 2016

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? The cost of social media done well is low. Just make sure you can fill in all the details.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Things will cost more than you expect. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Desperate entrepreneurs lose their leverage and die young. Buffer your projected resource requirements.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

The Startup Magazine

OCTOBER 22, 2020

Data analysis helps keep a detailed product portfolio whereby you can assess your products on several different metrics. Identify Costing Loopholes: All businesses function with one most essential aim: minimizing costs and maximizing revenue. Cost management is imperative in reducing costs.

Analytics 132

Analytics Portfolio Advertising Technical Review 132

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Ok, let’s jump in.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Haystack

DECEMBER 29, 2018

During this time, there’s financial leverage used in the transaction to help buffer the firm’s cost of capital (e.g. Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. 1/ Social Network Interference.

Technical Review 165

Technical Review Venture Capital Russia China 165

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Ok, let’s jump in.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

YoungUpstarts

NOVEMBER 20, 2019

When I started my last company, we were focused on developing technology to lower the cost of detecting and diagnosing Type 2 diabetes. You’ll certainly want to be clear about your unique differentiators, but VCs also want to see numbers and metrics, along with well-thought-out plans for how you’ll meet those metrics.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Startup Professionals Musings

MAY 1, 2019

With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Even huge valuation increases will evaporate overnight when profitability is nowhere in sight, and you run out of money.

Silicon Valley 215

Silicon Valley Bankruptcy Metrics Valuation 215

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

Up and Running

JULY 14, 2015

Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase. Let’s say the valuation an investor puts on your business is $2 million.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 91

eCommerce Valuation B2C Revenue 91

YoungUpstarts

APRIL 5, 2019

Are you fresh out of Y Combinator with $1 million in funding at a $10 million valuation? But flattering media attention too easily shifts focus away from the metrics that matter. Call me old school, but I believe in metrics like growth, revenue, and profit. All other metrics are irrelevant. You must be the man (or woman)!

Valuation 162

Valuation Cofounder Metrics SEC 162

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Ok, let’s jump in.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. People seem concerned about valuation. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Cracking the Code

FEBRUARY 23, 2011

The sales productivity ratio (measured with the Customer Acquisition Cost or CAC ratio) are also fairly similar for the two groups (except for a small cap dip in Q4 09) and therefore do not explain the difference Why is scale so much rewarded by public markets? Detailed SaaS Spreadsheet (Valuation and CAC benchmark). My Investments.

Software Review 101

Software Review Technical Review Valuation Europe 101

Cracking the Code

JANUARY 16, 2012

The passengers compensate the driver for the gas and toll costs, making it a fair trade. For example, a trip from Paris to Lyon (290 miles) would cost €25-30 compared to €100+ for the train. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. My Investments. CornerstoneOnDemand.

Software Review 95

Software Review Europe Technical Review Spain 95

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. So while the infrastructure cost and startup costs may have declined, the operating costs have increased.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

crowdSPRING Blog

NOVEMBER 1, 2013

Good whitepaper on advertising measurement metrics | by Ben Kunz – crowdspring.co/HsVIMR. Good whitepaper on advertising measurement metrics | by Ben Kunz – crowdspring.co/HsVIMR. Commuting’s Hidden Cost | NYT - crowdspring.co/1aR15fY. But a nearly $4 billion valuation? Nuts - crowdspring.co/1akpXj7.

Social Media 94

Social Media Small Business Design Media 94

Growthink Blog

APRIL 15, 2015

So easy to understand and believe in are Software-as-Services Models like Domo''s, with business models often boiling down to a simple cost of customer acquisition cost divided by lifetime customer value metric (in Domo''s case, over $50,000 per customer!). And that''s why that $2 billion valuation may not be so high after all.

Valuation 48

Valuation Venture Capital Finance Acquisition 48

Reid Hoffman

MARCH 23, 2021

The metrics from the dashboard are the key inputs for collective decisions. You can always instrument your business and gather metrics, but that doesn’t mean the data you gather will be useful. Just track metrics that help you improve the product. They’re how you understand if you’re making progress or not.

Venture Capital 46

Venture Capital Metrics Investment Bankers Framework 46

Cracking the Code

AUGUST 3, 2011

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. SaaS business metrics: why are they different? McKinsey highlight #1: the art of cost cutting or. S&M productivity (CAC ratio) for the SaaS 13 Index. Note: high CAC ratio means high productiviy (see blog post for definition).

Software Review 67

Software Review Europe Technical Review Search 67

David Teten

SEPTEMBER 23, 2017

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60